Jay Samit: The 3 Secret Words for Raising Startup Capital

May 19, 2015 3:32 pm ET

Jay Samit, serial entrepreneur: Since raising capital always takes longer than you think, the first secret is to start your raise long before you need it. You need to begin to network with angels and VCs while you are still ideating. It is easier to ask someone you know for funding than a stranger. Build your financial network by attending as many industry functions and reaching out for advice from experts online. Use these early months to ask questions about the investors’ requirements and dislikes. Some VCs want to see a minimal viable product, while others only need a solid team. Many seed investors are willing to work with convertible debt while others will require you to lock in a valuation. The earlier and more widely you plant seeds about what you are working on, the greater your potential for harvesting investors when you need them. …